|
|
Europe’s banks' representatives also expressed their support for a strong recovery and resolution regime, including bail-in, which would avoid having to call on taxpayers’ money if ever a new crisis would erupt. “Bail-in will be crucial but it has to be properly calibrated, in order to avoid increasing the funding cost of banks, which would have a negative effect on the economy”, explained Christian Clausen, President of the EBF and Group CEO of Nordea.
EBF Board members showed serious concern over the integrity of the banking Single Market. They stressed the need to avoid the collapse of major achievements as a result of the structural reforms currently under review by the Liikanen Group. “The EBF is concerned that the European Commission might consider structural reform as a further solution in addition to crisis management and bank resolution”, stated Clausen. “We strongly favour the completion of the international financial regulatory agenda, including bank resolution, as a first step, before considering invasive structural reform measures that will impair and dismantle much of the benefits of financial integration achieved to date.”
“Banks are in need of financial stability, but believe that a demonstrable link between structural reforms and financial stability needs to be established before further initiatives are taken”, concluded Clausen.